The annual revenue of the software company Paycom Software exceeded $1 billion

Paycom Software Inc. (PAYC), a provider of automated payroll and personnel management solutions, reported the results of the fourth quarter and the whole of 2021. The company is one of the beneficiaries of digital transformation and is likely to increase revenue due to the high demand for its solutions. As a result, Paycom Software’s revenue increased by 29% year-on-year to $285 billion in the fourth quarter, almost $10 billion exceeding Wall Street forecasts. 

One of the growth drivers was the Beti toolset. Paycom Software’s total revenue for the year exceeded $1 billion, implying an increase of 25% year-on-year. Paycom Software is increasing its customer base as more and more companies switch to automated tools in the personnel management and payroll market. Paycom has maintained a high level of revenue retention exceeding 90% but reached a record 94% in 2021. 

This means that customers are increasingly integrating Paycom Software solutions and using more of the company’s tools for doing business. In addition, over the past few months, Paycom Software has opened five new offices to strengthen its presence. Nevertheless, the company still occupies only 5% of its potential market, leaving a lot of room for growth. The forecast of Paycom Software management for 2022 provides for revenue growth of more than 20% year-on-year, that is, to more than $ 1.3 billion.

Since November, Paycom Software has been in a negative trend, and quotes have rolled back by almost 35% from 52-week highs. Taking into account that the company has returned more than 15% of its former losses week, thanks to a solid financial report.